STATE OF BUSINESS: Consumer Slowdown

The U.S. consumer, who has gone right on buying heavily despite the recession, finally showed some
signs of slowing up. The Federal Reserve Board reported last week that
March department-store sales failed to live up to expectations. While
sales were 1% above a year ago, the board had expected a rise of 6%
because of the early Easter. New York stores were up 7%, Minneapolis
6%, Atlanta 4%, but Cleveland, Chicago, St. Louis and Dallas were all
down, as much as 3%. Hoping to stir renewed interest. Sears, Roebuck &
Co. announced an average 13% price cut in its spring...